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The Bank for International Settlements says the impact of the Middle East war on the global economy may persist.
Although the current geopolitical tensions have eased and oil prices have fallen sharply, the impact of this shock may persist. The report said that thanks to optimism driven by the development of artificial intelligence and better-than-expected global trade performance, the global economy still showed strong resilience early this year.
While AI is expected to boost productivity in the future, the optimism surrounding it may not last. If supply bottlenecks continue to constrain production, the current strong growth in capital expenditures may be difficult to sustain.